American Petroleum Institute
This trade organization represents almost 400 companies that make up the oil and natural gas industries.

What They Want
API has three priorities in climate change discussions: equitable treatment, inclusion of oil companies' expertise and creation of one national standard.

Oil refiners are considered responsible for 44 percent of current greenhouse gas emissions because vehicle emissions (like those from automobiles, planes and trains) and stationary source emissions (like those from heating oil) are grouped in with the refineries. Proposed legislation would give oil refiners 2.25 percent of free allowances, and that's just not enough, said Lou Hayden, a policy analyst for API.

The proposed bills are "predetermining winners and losers" by imposing "inequitable costs" on certain industries, like the oil and natural gas companies, he said.

A study this year commissioned by API found that U.S. oil and natural gas companies invested $58.4 billion from 2000 through 2008 in emissions reduction technologies, which represents 44 percent of all such investments over that time period. As a result, Hayden argued, the industry has expertise in efficient ways to reduce emissions, like carbon capture and sequestration, and wants to be a part of the solution. But that expertise is not being heeded by lawmakers, Hayden said.

Finally, API wants to ensure a uniform national standard on climate change measures. New legislation should preempt other federal, state and regional policies, Hayden said.

Deal Breakers
Though API insists the bills passed by the House and under consideration in the Senate don't give the oil and natural gas industries a big enough slice of allocations, the group doesn't have a magic number in mind for the percentage it should receive. "Just treat everybody equitably," Hayden said.

After the House passed the Markey-Waxman bill in June, API's president and CEO, Jack Gerard, said in a statement that the bill would have "harmful effects on American consumers, businesses and the economy" by driving up fuel costs. He expressed similar opposition to the Kerry-Boxer bill after it was unveiled in the Senate last month.

"Like the House climate change bill, the Senate's Kerry-Boxer bill would hurt our economy by killing American jobs, increasing energy costs and undermining our nation's energy security," Gerard said in a statement.

How Much They've Spent
In the first nine months of 2009, API spent about $5.8 million on lobbying activities, according to disclosure forms. In the first nine months of 2008, the group spent about $3.6 million on lobbying. Reported lobbying expenditures this year are the highest in the past decade, according to the Center for Responsive Politics.

API does not have a political action committee. The oil and gas industry, through PACs and individuals, has contributed $6.3 million to federal candidates and political parties during the 2010 election cycle and contributed $35.6 million during the 2008 election cycle, according to CRP. This cycle, 66 percent of contributions have gone to Republicans, compared to 77 percent during the 2008 cycle, according to CRP.

API has run television commercials on climate change legislation but would not disclose how much it has spent on the advertising.

API's total revenue for 2007 was about $198 million, according to IRS forms.

Key Players
Gerard has been the face of the group's opposition to the bill passed by the House and now moving through the Senate.

Before joining API in 2008, Gerard was president and CEO of the American Chemistry Council and the National Mining Association, two groups that have also been involved in climate change discussions. In the 1980s, he worked on Capitol Hill for Rep. George Hansen, R-Idaho, and Senate Energy and Natural Resources Chairman James McClure, R-Idaho.

Members of API's staff have met with various lawmakers to provide "feedback" and "policy analysis," Hayden said. API is also working with coalitions of groups that are concerned about "the reliability of fuels in the future," like Energy Citizens, he said.

API employs 20 registered lobbyists, including Gerard, according to CRP.

More in Energy Go to section

October 04, 2010 | Energy and Environment Bulletin

Is Unpriced Carbon The Next Subprime?

September 02, 2010 | Energy and Environment Bulletin

Dems Seek Answers On Gulf Explosion

September 01, 2010 | Energy and Environment Bulletin

BP Spent Big On Advertising After Spill

August 24, 2010 | Tech Daily Dose

Biden: Stimulus Dollars Fueling Energy and Life-Saving Technology

August 17, 2010 | Insider Interviews

Deepwater Horizon's Enduring Lessons